According to recent figures, house prices in Scotland are up by nearly 11% in the year to March 2021. In Scotland, house prices rose by 10.6% over the year to March 2021, compared with a rise of 10.2 % in England, 11% in Wales and 6% in Northern Ireland.
Figures released by the Office for National Statistics show that we are seeing the highest price inflation in 14 years and the average property being sold for nearly £167,000.
As we have reported in several of our blogs, we have seen a huge rise in demand for family homes across the central belt of Scotland since the start of the pandemic.
Following the lockdown in March 2020, and the near closing of the property market until June that year, working from home, home schooling and being confined to our homes resulted in an unprecedented re-evaluation of what people are looking for from a home.
We saw a rise in interest in people looking for properties with gardens and balconies, less importance was placed on being close to transport links and instead proximity to green open space and rural locations took priority. Buyers were seeking an additional room for a home office or even a converted shed our outhouse to accommodate our ‘new normal’. Add to this the pent-up demand from those who had already planned to move, a stamp duty holiday, and the return of 95% mortgages and demand has far outweighed supply which inevitably pushes up prices.
All of these factors have helped fuel the highest price inflation for 14 years – up from 8.3% in the year to February.
Although there has been a high level of growth in northern regions (although much less growth in London) nowhere has seen the levels we are experiencing here in Scotland.
The Office for National Statistics (ONS) said the pandemic may have caused buyers to re-evaluate their housing preferences, with the average price of detached properties in the UK rising faster than flats and apartments, confirming that people looking for more space and less requirement to be close to the office.
Many people who have continued to work throughout the pandemic have found that they have spent much less on considered purchases – holidays have been on hold, people have been less likely to upgrade their cars and with a backlog from builders, home improvements have largely been put off.
The fast-moving market and lack of supply is pushing up prices with competition at its highest level and people missing out on properties even when offering well above the home report value.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today for friendly, impartial advice on finding your next dream home.
